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[H1514]How To Protect Your Identity

by D. Silva, D.

Identity theft occurs when someone acquires key pieces of your personal information with the intent to commit fraud. Most commonly, they use this information to open new credit accounts and run up huge debts. However, this is not the only use of stolen personal information. It can also be used by someone looking to immigrate illegally, carry out terrorist activities, assume a new identity, or even to blackmail you or someone in your sphere of relationships.

How does a thief gain access to your identity?

While most people believe their greatest exposure to theft is through the Internet, experts say your mailbox (where thieves can obtain account statements, new checks and credit offers) and your garbage are the easiest ways criminals can access your personal information. The theft of your purse or wallet is also common. And then there're those situations in which you willingly give out information over the phone (to someone who calls with a great offer) or over the Internet in response to a fraudulent email (commonly referred to as "phishing").

Once a thief has your information, he generally has weeks (even months) before you become aware that there's a problem. In fact, it may not become evident until you suddenly start receiving bills for revolving accounts you never set up, in towns you never visited, for items you never purchased. By this time, your credit report has become peppered with new accounts that you had no idea existed.

Once that happens, it's a nightmare trying to undo the damage.

However, there are ways to be proactive and protect yourself. For instance, most credit card companies offer services that will monitor your account for unusual activity, notify you immediately if there's a problem, and protect you from the fraudulent charges. The three leading credit reporting agencies in the United States: Equifax, TransUnion, and Experian, each offer monitoring services as well (although that's all they do ... monitor and inform).

There are other ways you can help minimize your potential risk as well:

Never share your banking information, particularly your personal password, with anyone unless you initiated the contact or you personally know the person you're dealing with. Legitimate banks and other businesses will not call or email you requesting your personal account information. When you receive a request for your account information (whether it's a bank account, a credit card account, or even a PayPal or eBay account), red flags should go up.

Always guard your PIN (personal identification number) at ATMs.

Sadly, you shouldn't leave outgoing mail in your home mailbox for pickup. Either take the mail to the post office or drop it off at a secure postal mailbox.

Never carry your Social Security card in your wallet. If you have to carry credit cards in your purse or wallet, as most of us do, keep them to a minimum. Preferably a single card.

Never use your credit card on the Internet unless you're initiating the purchase and it's done through a secure connection. You can quickly identify a secure connection by checking for "https" in the URL or the lock icon in the corner of the screen.

Keep a list of your credit card and bank account numbers in a secure location, such as a locked safe or a safety deposit box.

Always shred personal documents. This includes all those credit card offers you receive in the mail, old account statements, billing statements, credit card statements, etc. And use a double-cut shredder to be on the safe side. You can pick one up at nearly any office supply store for under $40.00.

Keep track of your bank and credit card statements. Make sure they arrive every month and monitor them for any unusual activity. If a bill doesn't show up, it can be an indication that someone has set up a change of address without your knowledge.

Order a credit report from all three agencies (Equifax, TransUnion, and Experian) twice per year, review them, and compare them carefully. If you discover any fraudulent entries immediately contact each agency, explain the situation and follow the proper procedures to correct the problem.

Identity theft is on the rise throughout the United States, but that doesn't mean it has to happen to you. Take a few diligent precautions and your chances of never becoming a victim increase dramatically.

However, you can actually do a better job of it yourself. For free.

While some of the steps may seem a little extreme, you need to remember that around 33.4 million Americans have been victims of identity fraud since 1990. You need to take those drastic steps to protect yourself and your family from identity theft.

Most people have to start by changing many simple things. The first, and most basic, thing to change involves your Social Security Number. Now I know that it used to be printed on your checks, written on your work or school id and on your medical chart at the doctor's office. But now it is too risky to use it for those purposes anymore.

Identity theives are specifically looking for your Social Security Number. With it, they can pretty much access all of your accounts. They can get your creidt, insurance coverage and a lot of other financial transactions. It is what says you are who you are.

Memorize your Social Security Number (and those of your spouse and children) and don't ever carry the card with you. Don't write it down. Don't give it out when your write a check (use your driver's license number instead). Don't give it to anyone who calls you first. You should only use it for employment and credit applications.

If you have an account that uses your Social Security Number, such as a student loan, ask that they use a different account number instead.

If someone asks for your Social Security Number, ask why they need it, how it will be used and how it will be protected. Find out what would happen if you didn't supply them with it.

You should also protect your driver's license number, address, telephone number, credit card numbers and other financial accounts from others as well. Try not to make information sensitive phone calls on your cell phone where you can be overheard.

You need to change your passwords and PINs frequently for accounts that you access both on and off the internet. Don't write these numbers or passwords down. Make them easy for you to remember, but hard for anyone else. Many advisors suggest that you take a phrase and use the first letter of each word for your password. This makes it very hard for someone to guess it. For example, you could take the phrase: I hate coming up with passwords, and make it into a password of: IHcuWP. Just don't write it down!!!

Everyone should own a shredder and use it. Shred every piece of paper you throw away. This includes receipts, credit card offers, unused convenience checks, replaced credit cards and all statements from financial institutions.

Store your papers in a safe deposit box. You might want to include your tax documents, copies of all your credit cards and the names, numbers and accounts numbers of all your financial relationships. This way, if something does happen to your home or your wallet, you can easily access all of your information. For information you store at home, such as receipts and statements, invest in a safe for your paperwork.

Most people who have their homes broken into today will tell you that the theives usually target their paperwork and their computers. They are looking to take more than what is in your home. They are looking for your credit and money as well.

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Both D. Silva & Rateempire are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

D. Silva has sinced written about articles on various topics from Finances, Business Credit Cards and Cars. . D. Silva's top article generates over 2400 views. to your Favourites.

Rateempire has sinced written about articles on various topics from Finances, Diamonds and Mortgage. RateEmpire, an internet consumer banking and ">mortgage rates marketplace, is a destination site of pers. Rateempire's top article generates over 18100 views. to your Favourites.